Chair Dukes requested a motion to approve the design of Phase A of the Health Sciences Building. Regent Moyer made a motion to approve the design and Regent Obielodan seconded the motion. Regent Grimshaw abstained from voting because he was part of the design process to help plan for a potential future clinic. Motion was approved. There were no dissenting votes. Motion Passed.

Dr. Bigard said they begin the budget process by identifying the priorities and then look at the resources available and ultimately reconcile the two to a balanced budget for the Board's consideration.

She said the biggest influence on the budget this year was Senate Bill 185 of increasing the requirements around students making an initial payment to satisfy their obligation to the university at or below $1,000.

Dr. Bigard summarized that they have done the following: taken a closer look at the organizational structure and staffing; looked closely at the 2027 enrollment projections along with academic program review process; looked at collections; looked at salaries and benefits and developed a master position list; prioritized vacancies; and looked at operating and contracts.

She said enrollment is the initial basis of the budget in addition to appropriations. She summarized the spring 2026 enrollment population, which was a total of 2,873.

As of June, the total number of freshmen that have completed application, accepted and registered for Fall 2026 is 189.

Dr. Bigard said the are projecting a fall enrollment of 2,570. She said this is a nine percent decline from fall to fall and that it is for budgeting purposes.

Dr. Bigard is projecting the Spring 2027 enrollment to be 2,285, which is a 20% decline from spring to spring for budgeting purposes.

Regent Moyer asked what proportion of the 80% graduated. Dr. Bigard said they have that data but they do not have it handy.

Dr. Bigard further discussed Senate Bill 185 in regards to collections and outstanding balances. She said they are working with an outside collection agency to turn over debt. She further said they cannot allow a student to come in unless they have made satisfactory payment arrangements to satisfy their debt down to $1,000. She further discussed in detail financial aid and student loans and communication with students.

Regent Fields said he is concerned about enforcement. He said it bottlenecks their system when the students haven't done what they need to do and wonders how they are going to handle that at the time it occurs. Dr. Bigard responded.

Regent Moyer had a comment on the 2026 budget uncollected amount. Dr. Bigard responded.

Regent Hatchett said he had the same concerns about a column of budgeted numbers that contain some outliers that they know are not accurate, including: (1) uncollected student debt, (2) other income and (3) endowment in the revenues categories. He further